NZI outlines benefits of going electric

NZI outlines benefits of going electric | Insurance Business New Zealand

Motor & Fleet

NZI outlines benefits of going electric

“There are a few common hurdles when businesses are looking at making the switch”

Motor & Fleet

By
Kenneth Araullo

A new report from NZI reveals the benefits of switching to electric vehicles (EVs) and hybrids for businesses, as well as the challenges to going green with an electric fleet.

The insurer’s EV Fleet Guide also looks at how businesses can overcome the challenges that have plagued early adopters in order to fully realize the potential of the new technology.

According to the report, a third of all new vehicles bought in December 2022 were EVs or hybrids. In the period between 2019 and early 2023, the country’s EV fleet grew from around 10,000 vehicles to nearly 60,000.

NZI executive general manager Garry Taylor (pictured) said that the insurer has learned a lot through its own EV Early Adopter program as well as working with clients.

“Our research, which included interviews with fleet managers and commercial drivers, shows that over half of those we surveyed expressed concerns about the charge range of EVs, often based on negative stories about early EV models,” Taylor said. “There are a few common hurdles when businesses are looking at making the switch. Their biggest concerns are usually around charging and what we term ‘range anxiety’.

“This is a common concern as we move away from the familiarity of fuelling up at the local petrol station, towards the need for charging a vehicle.  But this needn’t be the case as the technology rapidly improves. Unlike purchasing an EV for personal use, where the buyer is typically the driver, there’s also a need with business fleets to engage early on with those team members who will actually use the EVs,” Taylor said.

The benefits, and what early adopters say

Of the fleet drivers interviewed for the report, NZI said that 87% said that sustainability was in their mind in going green, while 85% said that it was important for the business. A further seven out of 10 fleet drivers also felt more positive towards employers with EVs and/or hybrids as all or part of their fleet.

Taylor added that about 20% of New Zealand’s greenhouse gas emissions come from transport. As around 85% of the country’s electricity is sourced from renewables, going electric makes a world of difference.

“NZI‘s early EV adopters tell us they’re excited about reducing their emissions. They’re also pleased to be saving money, as EVs are cheaper to run and maintain,” Taylor said.

Several early EV adopters have also weighed in on the transition. NZI business development manager and early EV adopter Robert Nicholls said that a key aspect is to treat an electric vehicle as you would your mobile phone.

“If you can keep a cell phone charged you can keep enough charge in an EV. Just remember A, B, C – Always Be Charging. If your car is sitting doing nothing it should be charging if possible,” Nicholls said.

Likewise, Loren Graig, a senior business development manager for the insurer, reassured worries regarding the ‘range anxiety’ and managing the vehicle’s charge to someone coming from an internal combustion engine (ICE) vehicle.

“It can feel like a big change and you worry that you’ll run out of battery, but the reality is, it’s just another car with a slight difference to it. You’ll soon be in the flow of it and I’m sure you’ll love it!” Graig said.

Taylor added that the challenges for EVs can be met thanks to several options with differing costs and benefits, stressing that it’s important to know what works for specific businesses.

“At NZI, we’re really excited about the future of EVs within the New Zealand light commercial fleet.  From the research we’ve conducted, the anecdotal evidence we’ve heard from our clients, and our own experience as we transition our own fleet to EVs – it all paints a picture of technology that is already delivering – not only for business, but also for the environment,” Taylor said.

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